Trading and/or Investing on the JSE does not require stock monitoring or share-trading software
The Johannesburg Stock Exchange (JSE) receives several enquiries about whether it is necessary to buy stock-monitoring, share-trading software or any other software packages in order to trade and/or invest on the JSE. In addition, queries are also received about organisations that offer training courses claiming to equip individuals with the “knowledge to become a successful investor/trader on the JSE”.
Bearing this in mind, the JSE would like to highlight the easy steps of how to invest and trade on the JSE:
1. Firstly - no stock-monitoring or share-trading software is required to invest and/or trade on the JSE. The JSE does not sell, endorse or authorize any such software – any marketing claims made that suggests otherwise are incorrect.
2. Secondly, the manner in which an investment and/or trade operates must be considered. Many marketing campaigns of stock monitoring or share-trading software claim that the software allows investments and/or trades directly on the JSE. This is incorrect. A person can only invest and/or trade on the JSE by opening an account with a broker (also referred to as “Members”) of the JSE. Usually, setting up such an account with a broker is free and only a monthly administration fee (between R15 and R90) is paid to the broker.
A broker is able to manage your portfolio for you but they may also allow you to use their facilities to manage your own portfolio. People often view this as a direct method of investing and/or trading on the JSE, but actually the investing and/or trading is done through the broker - even though you are making your own decisions about what and when to buy and sell.
To view a list of brokers
click here where you will find a list of brokers (members). A JSE Member is authorized by the JSE, after fulfilling stringent general and special requirements, to perform trading and investment services.
3. Thirdly, investing and/or trading on the JSE is not a way to get rich quickly, with no effort. It takes a lot of time, effort and knowledge to make a profit on the stock market. If you want to manage your own portfolio successfully, you will need to invest time and study the market. A quick training course may not enable you to do this.
If you are interested in trading on the JSE we suggest that you contact the JSE Retail Development Division (direct line 011 520 7000) who will provide guidance as to how to invest on the JSE.